Cryptocurrency has gained a lot of recognition in these recent years. Many people still are not fully aware of what cryptocurrency is and how one can use it for transactions and investments. This article will help you understand better what cryptocurrency is, the various kinds of cryptocurrencies, and how one can buy and invest in cryptocurrency.
What is Cryptocurrency?
Cryptocurrency, also known as ‘crypto’ is a form of digital payment where actual physical money is not involved; the banks are not involved either. One does not need to verify from the bank to perform a transaction which makes it quite flexible to perform transactions overseas. The entries of the transactions made via cryptocurrency are stored in the online database and they are stored in digital wallets.
High-level coding is involved in storing and transmitting data from one digital wallet to another. Encryption is used to store the data securely. Most people used cryptocurrencies as a form of investment apart from the classic mutual fund investments because of which cryptocurrency has gained a lot of fame in recent years and the prices of it have increased drastically.
How to Invest in Cryptocurrency in India?
Many people want to invest in cryptocurrency but are not aware of how to invest in the same. There are various steps through which one can invest in cryptocurrency in India.
They are:
Choosing a Platform: The first and foremost step is to choose a platform through which you want to invest in cryptocurrency. The first platform is Traditional Brokers. Through this platform, you will be introduced to traditional brokers who will offer you ways in which you can buy and sell cryptocurrency.
They also offer you ways in which you can invest in stocks, bonds, and ETFs.
Cryptocurrency Exchanges: There are various platforms through which you can invest and trade. These platforms offer different cryptocurrencies, wallet storage, and many more options to choose from while investing and trading.
You should compare different platforms and the charges and benefits they offer in terms of security while deciding through which platform you should invest and trade.
Funding your account: After deciding on the platform, next comes to provide funding to your account so that you can begin trading. There are different ways in which you can purchase cryptos. Some of them are:
Government-issued currencies: This includes currencies like Euro, the US Dollar, and so on using their Debit or credit cards. This varies from platform to platform.
The purchases through credit cards are not supported by some of the platforms as they are considered risky purchases.
This is because cryptocurrencies are highly volatile and it is not advised to take a risk on that and go into debt.
ACH Transfers and Wire Transfers: This is yet another way in which you can purchase crypto. The time required for deposit and withdrawal may vary from platform to platform.
An important factor to be considered here is the fees that have been charged while purchasing. The platforms charge various fees like deposit and transaction fees. Different platforms offer different transaction fees. You should consider this before investing.
Placing an Order: The final step is placing an order and purchasing the cryptocurrencies.
The steps to make a purchase are as follows:
- Open the platform and select ‘buy’.
- Choose the order type.
- Enter the number of cryptocurrencies.
- Confirm the order
Best Crypto Exchange in India with low fees:
eToro:
eToro is one of the most respected platforms and it has about 23 million users. The user can invest in over 40 different cryptocurrencies.
The platform has no trading fee for opening and closing a trade and charges only for the spread.
One of the other good things about eToro is that the user can trade for a low amount of $10 per trade for a quick start for beginners.
It offers payment via credit/ debit card, bank transfer as well as an e-wallet.
It also has its education services known as ‘eToro Academy’ which provides free articles and videos for users who are new to the crypto trading business.
Binance:
Binance is yet another bitcoin exchange with a low trading fee. It only charges a 0.1% trading fee while opening and closing a trade and provides over 500 cryptos in which the user can invest and trade-in.
There is an additional cap of discount of 25% if the user holds BNB i.e. Binance’s native cryptocurrency.
There are two separate platforms for beginners and experienced traders.
Both the platforms have great charting capabilities and indicators which eases the user to optimize their trade. It also accepts FIAT deposits if the user has their account in USD.
Coinbase:
It has 2 kinds of platforms; the Standard platform and ‘Coinbase Pro’.
The standard provides basic features and is targeted toward audiences who do more casual trading.
The Coinbase Pro has more advanced features like real-time order books and a lower fee structure.
It charges variable transaction fees for opening and closing a trade, as well as the spread.
The users can invest in over 130 different crypto assets on both platforms.
Best Cryptocurrency Apps in India in 2022:
WazirX:
This application provides a platform on which the users can trade, manage, analyze and keep track of their digital assets.
The application has gained a lot of popularity in India because it’s available on the play store/ AppStore for free and has a user-friendly interface.
The application is designed in such a way that it becomes easier for someone who does not have much knowledge about how to trade cryptos.
The application also allows automating the trading of cryptocurrency.
It charges a 0.20% trading fee and provides a discount based on the WRX holdings of the user. It allows the users to trade different kinds of cryptocurrencies like Bitcoin, Ethereum, Litecoin, etc.
CoinSwitch Kuber:
It is one of the most trusted trading platforms for cryptocurrency.
It aims to make crypto trading easier for people. Furthermore, it has processed more than 5 billion dollars of transactions in volume.
The user must have a KYC for trading via this platform, which provides an additional security shield to the transactions.
It is the second most valued Indian crypto startup in India at a valuation of nearly 1.9 billion USD.
Unocoin:
It is the oldest trading platform for crypto trading in India and has processed over 11.7 million transactions. Not only that, but it provides dynamic trading fees for high-volume transactions.
It allows the user to automate their trending as it provides their trading API which the user can access to automate their trades by making trading robots that trade as per the real-time market updates.
It has played an important role in fighting for crypto rights in India and making it a user-friendly platform for people who are new to the crypto trading ecosystem.
ZebPay:
It was launched in 2014 and ever since it has processed more than 10 billion worth of volume transactions. Likewise, it focuses a lot on safety and keeps most of its registered tokens in cold/ hardware wallets instead of keeping them on a server that might be accessible to the hacker.
This makes it robust, and the user can be reliable for the security of their data. It ensures that their user earns a 5% return on their investment. It also allows the user to lend their crypto to other users at an interest rate of 10%.
I started my bitcoin investing journey using Zebpay way back in 2017.
CoinDCX:
This platform was launched in 2018 in India and in such a short period it has about 10 million users in India. The platform provides constant audits to enhance its existing security protocols. It uses COSMEX as a platform to provide traders access to one-third of the global crypto liquidity.
Currently, CoinDCX is the most valued crypto startup in India, and at the time of writing this article. It raised funding recently, and CoinDCX has a valuation of 2 billion USD.
Some frequently asked questions about cryptocurrency trading in India
Is it legal to buy Cryptocurrency in India?
Currency no legislation covers the investment and trading in cryptocurrencies in India. But this does not mean that buying and owning cryptocurrencies in India is illegal.
Where to buy bitcoin in India?
There are various trading platforms on which users can buy bitcoin in India. To name a few, Paxful, zebpay, Binance, Unocoin, WazirX, etc.
Name some made-in India cryptocurrencies.
An Indian trading platform for a cryptocurrency called CoinSwitch Kuber has announced the addition of new coins which are the made-in India cryptocurrency. They are MANA, SAND, GALA, REQ, and COTI.
Which is the safest crypto exchange in India?
CoinDCX is considered one of the safest crypto exchanges in India. This can be concluded in terms of its registered users which is over 4 million as well as that the users have access to more than 200 cryptocurrencies like Ethereum, Bitcoin, Litecoin, etc.
P.S. For any inquiry or suggestion, email at geekyadmin(at the rate)geekygadgets(.)in
Join our
growing Geeks Community of 3000+ & counting..
Get fast access to gadgets, tech news & deals!
